Library / Applicable to all Oil & Gas Operators GUIDELINES FOR PRODUCERS ASSOCIATED GAS UTILISATION PROJECTS Code: DPR Guide 0008 - 2020 Revision Date: 1st August 2020

Applicable to all Oil & Gas Operators GUIDELINES FOR PRODUCERS ASSOCIATED GAS UTILISATION PROJECTS Code: DPR Guide 0008 - 2020 Revision Date: 1st August 2020

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Applicable to all Oil & Gas Operators  
GUIDELINES FOR PRODUCERS ASSOCIATED GAS UTILISATION PROJECTS 
Code: DPR Guide 0008 - 2020 
 
Revision Date: 1st August 2020 
 
 
This is a property of the Department of Petroleum Resources. All rights reserved  
9 
4.2 
Additional terms for Producers’ Approved Flare Out Projects 
a. 
The Flare Gas delivered to the Producer’s Approved Flare Out Project is owned by the 
Federal Government of Nigeria and the Flare Gas Price paid by the Permit Holder (also 
referred to as the Flare Gas Buyer) shall at minimum be the Flare Gas Floor Price as 
approved by the Minister of Petroleum Resources for the duration of the Permit to 
Access Flare Gas. 
b. 
The Flare Gas Buyer shall agree to a Take or Pay provision under the Gas Sales 
Agreement with the Seller. 
c. 
The Federal Government of Nigeria shall not provide any backstop guarantees to a 
Producer’s Approved Flare Out Project in the event of any Contracted Flare Gas 
Delivery Shortfall. 
d. 
The Flare Gas Buyer may enter into a Deliver or Pay Agreement with the Producer. 
e. 
Emission Credits secured through a Producer’s Approved Flare Out Project shall 
belong to the Federal Government of Nigeria. 
f. 
On the Commercial Operations Date, the Milestone Bond shall be replaced by a 
Performance Bond, which shall be valid for the term of the Permit to Access Flare 
Gas. 
g. 
As defined in the Guidelines for Flare Payments, the Producer will be exempted only 
from making Flare Payments for Contracted Guaranteed Flare Gas Buyer Shortfall 
quantities. 
h. 
Unless provided otherwise in these Guidelines, Producers’ Approved Flare Out 
Projects are subject to the terms and conditions as defined in the Guidelines for Flare 
Gas Measurement Data Management and Reporting Obligations and the Guidelines 
for Flare Payments.